Authorities Involved in Industry Registration in Nepal

1. Introduction to Relevant Authorities

Industry registration in Nepal involves multiple government bodies, each tasked with specific legal and administrative responsibilities. Coordination among these authorities ensures legal compliance under the Industrial Enterprises Act, 2076. Each authority has jurisdiction over distinct parts of the registration and post-registration process, such as documentation, tax registration, environmental clearance, and foreign investment.

2. Department of Industry (DOI) Overview

The Department of Industry (DOI) under the Ministry of Industry, Commerce and Supplies (MoICS) is the primary regulatory authority for registering industries in Nepal. DOI issues registration certificates, evaluates feasibility reports, and monitors compliance. It is governed by the Industrial Enterprises Act, 2076. The DOI also oversees One-Stop Service Centers for industries seeking faster processing.

3. Role of Office of Company Registrar

For industries operating under a corporate structure, the Office of the Company Registrar (OCR) handles the incorporation. This office registers companies under the Companies Act, 2063. Businesses must complete company registration before industry registration when functioning as a private limited, public limited, or partnership firm.

4. Ministry of Industry, Commerce and Supplies

The Ministry of Industry, Commerce and Supplies (MoICS) formulates industrial policy and supervises the DOI and Industrial Promotion Board (IPB). It approves national-level industry development programs and monitors the coordination among provincial offices. MoICS also provides policy direction to local authorities.

5. Local Government Roles and Responsibilities

Local municipalities or rural municipalities are involved in issuing recommendations for industry establishment within their jurisdiction. They approve land use, construction permits, and local business operation licenses. Their involvement is mandated by the Local Government Operation Act, 2074.

6. Industrial Promotion Board (IPB) Involvement

The IPB reviews and approves large-scale and foreign-investment industries. It is responsible for recommending tax exemptions and subsidies. The IPB operates under the jurisdiction of MoICS and ensures industrial development aligns with national policy.

7. Environmental Authorities (if applicable)

Industries categorized as medium or high environmental impact must obtain Environmental Impact Assessment (EIA) or Initial Environmental Examination (IEE) approval from the Ministry of Forests and Environment or its provincial departments, as per the Environment Protection Act, 2076.

8. Tax Authorities and PAN Registration

The Inland Revenue Department (IRD) registers industries for PAN (Permanent Account Number) and VAT (Value Added Tax) under the Income Tax Act, 2058. PAN registration is mandatory before industry operation. Local tax offices issue tax certificates used in further regulatory submissions.

9. Role of Nepal Rastra Bank (for FDI)

Industries with foreign direct investment (FDI) must register with Nepal Rastra Bank (NRB) under the Foreign Investment and Technology Transfer Act, 2075. NRB ensures FDI compliance in terms of capital inflow, equity transfer, and currency regulation.

10. District Administrative Offices (DAO) Duties

DAOs issue verification of citizenship, local residency, and land ownership deeds. They authenticate documents and may be required to provide clearances related to industrial land or infrastructure. DAOs also facilitate notarization for official documents.

11. Communication with Multiple Departments

Industry registration applicants must coordinate with various departments, especially when the industry involves environmental concerns, FDI, or local-level infrastructure. Delays often occur due to miscommunication or unclear documentation. Maintaining a contact record for each authority helps.

12. Online Portals of Concerned Authorities

Nepal’s government has launched several online portals:

• Department of Industry: doind.gov.np
• OCR: ocr.gov.np
• IRD: ird.gov.np
• Nepal Rastra Bank: nrb.org.np These platforms support document submission, tracking, and status updates.

13. How to Approach Government Offices

Applicants should prepare documents in the prescribed format and submit them through online or physical means as per the department’s rules. It is advisable to take prior appointments and consult with legal advisors. Clearly labeled documents and official copies expedite processing.

14. Role of Legal Advisors with Authorities

Legal advisors assist in preparing industry registration files, ensuring compliance with laws, and representing clients before government authorities. They also help interpret government notifications, handle appeals, and facilitate liaison with officials.

15. Authority Checklist and Contact Details

A checklist includes:

• DOI for primary registration
• OCR for company registration
• IRD for PAN
• Local government for location approval
• Ministry of Environment for EIA/IEE
• Nepal Rastra Bank for FDI
• IPB for incentives
• DAO for document verification

MedhaCorpLaw assists in coordinating with these authorities to streamline approvals and avoid errors. We offer end-to-end legal solutions for industry registration in Nepal.

 

FAQs

 

1. Which authority handles registration?
   The Department of Industry is the primary authority for industry registration in Nepal.
2. Is DOI the main authority?
   Yes, it is the central authority for issuing registration certificates.
3. Do I need local approval too?
   Yes, approval from the local municipality or ward is required.
4. Who approves environmental reports?
   The Ministry of Forests and Environment or provincial offices approve EIA or IEE.
5. Where to get the application form?
   Forms are available at gov.np and at the DOI office.
6. Is the Company Registrar involved?
   Yes, for corporate entities, OCR registration is mandatory.
7. What about foreign investment?
   Nepal Rastra Bank handles foreign investment regulation and approval.
8. Are there online authority portals?
   Yes, most major authorities have online platforms for submission and tracking.
9. Do authorities provide updates?
   Yes, especially through online portals and contact points at the departments.
10. Can I contact them directly?
    Yes, most offices have public liaison officers or inquiry counters.

 

MedhaCorpLaw provides assistance in dealing with all listed authorities. Our experienced legal team ensures that your application meets legal standards and is submitted efficiently to reduce registration time and legal errors.